Investment? Only in cryptocurrencies. Up to 12% per year

As banks compete in reducing the interest rate on the funds we have accumulated in deposits, more and more people are looking for other ideas for investing capital. Invest in real estate, shares, bonds? Or maybe something new? Deposits in cryptocurrencies are becoming more and more popular.

The reduction of interest rates after the outbreak of the coronavirus epidemic may have pleased the owners of variable-rate loans, but certainly worried savers who kept their money in banks. Information about changes in regulations was sent to customers immediately. At first, of course, the interest rates on all deposits were reduced. Some banks also closed the possibility of using savings accounts, others reduced their interest rate to symbolic 0,1% per year. Deposits? Only the lucky ones who got the promotions have an interest rate of up to 3%, which is equal to official inflation. For this, the promotion usually applies only to new funds, new customers, or an amount of up to e.g. 20 thousand. zł.

CRYPTOCURRENCY EXCHANGE - OVERVIEW

Deposits also in cryptocurrencies

Not surprisingly, most savers have started looking for the possibility of investing their savings outside the bank. The purchase of real estate is too big an investment for many, not everyone knows art, bonds also do not dazzle with rates of return, just like most mutual funds. Deposits in foreign banks are also disappointing with the rate of return, but the financial world hates a vacuum, so new opportunities have appeared on the horizon. These are deposits that can be deposited in ... cryptocurrencies.

Attentive readers of the Forex Club website know that we use them in our cryptocurrency retirement portfolio.

Crypto deposits on cryptocurrency exchanges

Cryptocurrency deposits are becoming increasingly popular on cryptocurrency exchanges. Initially, these were only periodic offers, but it changes quickly. They are mainly related to ensuring smooth trade, especially stock exchanges that offer leverage on the cryptocurrency market, and it is slowly becoming common, as per Forex market.

We have a choice of two types of deposits: capitalized on a daily basis, with lower interest rates and for a specific period, e.g. 30-90 days, on which you can earn more. The rules are the same as in banks: a flexible deposit can be canceled every day, maintaining interest from the previous day, and deciding to terminate the term deposit before its maturity, we will unfortunately receive nothing but a deposit.

The interest rate also varies depending on the cryptocurrency. On the most popular in the world Binance cryptocurrency market for Kava cryptocurrency we can earn 15%but for Bitcoin already only 0,75% annually. The average for all offered cryptocurrencies is around 6% per year.

Cryptolocates at intermediaries

A deposit in cryptocurrency can also be opened in companies that admit to trading cryptocurrencies or loans of digital funds, but are not classic cryptocurrency exchanges. These include Gate.io, where on average for a deposit in cryptocurrency we will get as much as 11,67% per year.

If we decide on the option "Lock-up & Earn" (cryptocurrencies available in it are: IoTeX, BTC, ETH and EOS) we will earn 22,1% on average, but cryptocurrencies must be blocked for at least a month.

It is certainly an offer worth considering, but regardless of whether and which option we choose, remember that cryptocurrency prices are highly volatile. When deciding on a cryptocurrency deposit, you must take into account the possibility of a decrease in its value compared to traditional currencies. On the other hand - the increase in value is an additional bonus to the deposit. So everyone has to make the decision for himself.